Explore the 2025 guide on on grid solar system cost, subsidies, installation, and sustainability in India. Save big with net-metering and go green!
Table of Contents
- What Is an On Grid Solar System?
- Why Choose On Grid Over Off-Grid or Hybrid?
- Components & Cost Breakdown of On-Grid Solar
- Average On-Grid Solar System Cost in India
- Government Subsidies & Net-Metering Explained
- Installation Process & Considerations
- Maintenance, Warranty & Lifespan
- Environmental Benefits of On-Grid Solar
- Common FAQs—Answered
- Final Verdict
- Read More
- Sources
1. What Is an On Grid Solar System?
An on grid solar system (or grid-tied system) is a rooftop photovoltaic setup connected to the utility power grid. It operates without batteries, exporting unused electricity to the grid and drawing power when the panels don’t produce enough. This system enables net-metering, allowing homeowners to earn credits for surplus generation.
2. Why Choose On Grid? Key Advantages
- Zero Battery Costs – No batteries means lower initial investment and maintenance costs.
- Net-Metering Savings – Excess solar power exported to the grid earns you electricity credits.
- Simple & Reliable – Less equipment, fewer technical complexities.
- Fast ROI – Often pays back within 4–5 years due to efficient utilization and incentives.
- Seamless Power Supply – Grid acts as a reliable backup during low solar output.
3. Components & Cost Breakdown
An on-grid solar system includes:
- Solar panels (1kW = 3–4 panels)
- String inverter (converts DC to AC for grid use)
- Mounting systems, wiring & earthing
- Net-meter installation
- Electrical integration with your home panel
| Layer | Approx. Cost (₹/kW) |
|---|---|
| Panels | ₹25,000 – ₹35,000 |
| Inverter | ₹10,000 – ₹18,000 |
| Mounting & Wiring | ₹5,000 – ₹7,000 |
| Net-Meter | ₹2,500 – ₹4,000 |
| Installation | ₹3,000 – ₹5,000 |
Total: ₹45,500 – ₹69,000 per kW, before subsidies.
4. Average On Grid System Cost in India (2025)
| System Size | Approx. Cost Range (₹) |
|---|---|
| 1 kW | ₹55,000 – ₹75,000 |
| 3 kW | ₹1.6–2.0 lakh |
| 5 kW | ₹2.7–3.5 lakh |
| 10 kW | ₹5.0–6.5 lakh |
🔑 Good to know: Smaller systems (<3 kW) qualify under rooftop net-metering with full subsidy benefits.
5. Government Subsidies & Net-Metering
Subsidy Opportunities
- PM Surya Ghar: Up to ₹30,000/kW subsidy for residential rooftop solar.
- Off-grid and hybrid systems may receive higher subsidies, but on-grid systems get full subsidy without batteries.
Net-Metering Essentials
- Export surplus energy to the grid and earn credits.
- Credits offset your future electricity usage, reducing bills significantly.
- System designed to offset up to 90–120% of annual consumption.
6. Installation Process & Considerations
- Confirm fees and net-meter availability with your DISCOM.
- Choose MNRE-approved vendors and tier-1 brands for panels and inverters.
- Get the necessary electrical and construction approvals.
- System gets inspected post-installation, inverter commissions, and grid connection authorized.
- Install digital generation meter and connect net-meter.
7. Maintenance, Warranty & Lifespan
- Panels: 25-year performance warranty, expecting 80–85% efficiency at end-of-life.
- Inverters: 8–10 years warranty; may need replacement afterwards (~₹12,000).
- Cleaning: ₹500–₹1,000 twice a year improves performance by 8–10%.
- Service (optional): ₹1,200–₹2,500/year.
8. Environmental & Sustainability Benefits
- Reduces 1kW system’s carbon footprint by ~1 ton CO₂/year
- Saves ~20,000 liters of water annually (vs. thermal power)
- Reduces power grid strain during peak hours (e.g., afternoon A/C usage)
- Encourages local employment in solar installations
9. Common FAQs
Q1: Will I lose power during grid failure?
A: Yes. On grid systems shut down to prevent back-feeds during outages. Hybrid setup required for self-sufficiency.
Q2: What sizes are optimal?
A: Most households choose 3–5 kW to cover daytime usage and maximize savings.
Q3: Is net-metering fair?
A: Yes. Wholesale net-metering ensures credits roll over annually, benefiting system owners.
10. Final Verdict
Investing in an on grid solar system today means:
- Minimal upfront cost
- Full net-metering subsidy
- Rapid return on investment (around 4–5 years)
- Significant environmental and personal savings
✅ If you have grid connection and want affordable and eco-friendly power, on-grid is your top solar choice.
🏷️ Tags
on grid solar system, on grid solar cost, net-metering India, PM Surya Ghar, rooftop solar 2025, solar subsidies, grid-tied solar, solar installation India, solar savings, renewable energy, home solar, MNRE-approved solar, green energy, Net Zero India
🔗 Read More
- GreenX – Residential Solar Installations
- PM Surya Ghar – Rooftop Solar Scheme
- Invest in Sustainability
- Join the Net Zero India Community
- Carbonil
📚 Sources
- MNRE rooftop solar guidelines 2025
- DISCOM net-metering policies
- BEE energy efficiency reports
